SUMMARY: INITIAL WA GOVERNMENT REACTION TO FEDERAL APPROVAL OF
ALWEST PROJECT IS STRONG SKEPTICISM THAT PROJECT HAS ANY CHANCE
OF SUCCEEDING DUE TO THE ENVIRONMENTAL CONTROL CONDITIONS.
END SUMMARY.
1. EMBASSY CANBERRA REPORTED ANNOUNCEMENT OF FEDERAL GOVERNMENT
APPROVAL FOR ALWEST IN REFTEL.
2. SINCE ANNOUNCEMENT, WA GOVERNMENT HAS TAKEN LARGELY NEGATIVE
PUBLIC POSTURE REGARDING FUTURE OF PROJECT. PREMIER COURT,
UPON RETURN TO AUSTRALIA FROM HIS OVERSEAS TRIP, FIRST STOPPED
IN MELBOURNE FOR CONSULTATIONS WITH BROKEN HILL PROPRIETARY,
CHIEF AUSTRALIAN PARTNER IN ALWEST. ALTHOUGH NO ANNOUNCEMENT
MADE OF RESULTS OF THESE CONSULTATIONS, PREMIER AND OTHER STATE
AUTHORITIES HAVE STATED PUBLICLY THAT FEDERAL APPROVAL OF LITTLE
CONFIDENTIAL
CONFIDENTIAL
PAGE 02 PERTH 00046 070354Z
VALUE DUE ENVIRONMENTAL STRINGS ATTACHED. IN PRESS CONFERENCE
UPON RETURN TO PERTH, COURT STATED THAT TEXT OF FEDERAL APPROVAL
QUOTE IMPOSED CONDITIONS INTENDED NOT TO GET THE PROJECT OFF THE
GROUND UNQUOTE AND THAT QUOTE IT APPEARS WHITLAM WANTS THE COMPANY
AND THE STATE GOVERNMENT TO GO INTO THE PROJECT ON A BASIS OF
LITERALLY NOT KNOWING WHAT THE COMMITMENTS WILL BE MADE FROM
YEAR TO YEAR UNQUOTE.
3. CONSULATE HAS LEARNED FROM GUARDED REMARKS OF TWO MEMBERS OF
PREMIER'S OVERSEAS MISSION THAT AN ENTIRELY NEW APPROACH TO
PROJECT WILL BE REQUIRED AS A RESULT OF CONSULTATIONS IN U.S.
WITH ALCOA AND REYNOLDS. WA INDUSTRIAL DEVELOPMENT COORDINATOR
STATED THAT FEDERAL GOVERNMENT APPROVAL WOULD HAVE BEEN FINE A
YEAR AGO BUT THAT NOW AN ENTIRELY NEW CONSORTIUM WOULD HAVE TO
BE ORGANIZED. MITCHELL, PREMIER'S PRIVATE CONSULTANT, SAID
PREMIER HAD GONE WAY BEYOND ORIGINAL CONCEPT AND THAT A NEW
ARRANGEMENT WOULD NOW BE WORKED OUT BETWEEN ALCOA AND REYNOLDS
WITH LATTER TAKING ALUMINA FROM ALCOA'S REFINERIES. PROBABLY
REFLECTING PREMIER'S VIEWS, MITCHELL ADDED THAT REYNOLDS QUOTE
NOT ALL THAT GOOD ANYWAY UNQUOTE AND THAT FEDERAL GOVERNMENT
HAD NO BUSINESS LAYING DOWN ENVIRONMENTAL CONTROLS WHICH
PROPERLY ARE A MATTER OF STATE JURISDICTION.
4. MEANWHILE PRESS REPORTS INDICATE THAT THE LONG DORMANT
US$465 MILLION PACMINEX BUAXITE/ALUMINA REFINERY PROJECT NORTH
OF PERTH MOVING AHEAD MORE RAPIDLY WITH STRONG POSSIBILITY
OF IRANIAN PARTICIPATION.
5. PREMIER HAS PROMISED REPLY TO WHITLAM ON ALWEST BY NEXT WEEK
AND CONSULATE WILL REPORT ADDITIONAL DEVELOPMENTS.
FOULON
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NNN

Raw content

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PAGE 01 PERTH 00046 070354Z
66
ACTION EA-10
INFO OCT-01 ISO-00 EB-07 INT-05 PA-01 PRS-01 USIA-06
COME-00 OPIC-03 OES-03 NEA-09 OMB-01 TRSE-00 CIAE-00
INR-07 NSAE-00 RSC-01 GSA-01 /056 W
--------------------- 062200
R 070259Z FEB 75
FM AMCONSUL PERTH
TO SECSTATE WASHDC 796
INFO AMEMBASSY CANBERRA
AMCONSUL BRISBANE
AMCONSUL MELBOURNE
AMCONSUL SYDNEY
C O N F I D E N T I A L PERTH 0046
E.O. 11652: GDS
TAGS: EAL, ECON, EMIN, EINV, AS
SUBJECT: WEST AUSTRALIAN (WA) STATE GOVERNMENT REACTION TO FEDERAL
GOVERNMENT APPROVAL OF ALWEST ALUMINA REFINERY PROJECT
REF: CANBERRA 693; PERTH A-40 OCTOBER 21, 1974.
SUMMARY: INITIAL WA GOVERNMENT REACTION TO FEDERAL APPROVAL OF
ALWEST PROJECT IS STRONG SKEPTICISM THAT PROJECT HAS ANY CHANCE
OF SUCCEEDING DUE TO THE ENVIRONMENTAL CONTROL CONDITIONS.
END SUMMARY.
1. EMBASSY CANBERRA REPORTED ANNOUNCEMENT OF FEDERAL GOVERNMENT
APPROVAL FOR ALWEST IN REFTEL.
2. SINCE ANNOUNCEMENT, WA GOVERNMENT HAS TAKEN LARGELY NEGATIVE
PUBLIC POSTURE REGARDING FUTURE OF PROJECT. PREMIER COURT,
UPON RETURN TO AUSTRALIA FROM HIS OVERSEAS TRIP, FIRST STOPPED
IN MELBOURNE FOR CONSULTATIONS WITH BROKEN HILL PROPRIETARY,
CHIEF AUSTRALIAN PARTNER IN ALWEST. ALTHOUGH NO ANNOUNCEMENT
MADE OF RESULTS OF THESE CONSULTATIONS, PREMIER AND OTHER STATE
AUTHORITIES HAVE STATED PUBLICLY THAT FEDERAL APPROVAL OF LITTLE
CONFIDENTIAL
CONFIDENTIAL
PAGE 02 PERTH 00046 070354Z
VALUE DUE ENVIRONMENTAL STRINGS ATTACHED. IN PRESS CONFERENCE
UPON RETURN TO PERTH, COURT STATED THAT TEXT OF FEDERAL APPROVAL
QUOTE IMPOSED CONDITIONS INTENDED NOT TO GET THE PROJECT OFF THE
GROUND UNQUOTE AND THAT QUOTE IT APPEARS WHITLAM WANTS THE COMPANY
AND THE STATE GOVERNMENT TO GO INTO THE PROJECT ON A BASIS OF
LITERALLY NOT KNOWING WHAT THE COMMITMENTS WILL BE MADE FROM
YEAR TO YEAR UNQUOTE.
3. CONSULATE HAS LEARNED FROM GUARDED REMARKS OF TWO MEMBERS OF
PREMIER'S OVERSEAS MISSION THAT AN ENTIRELY NEW APPROACH TO
PROJECT WILL BE REQUIRED AS A RESULT OF CONSULTATIONS IN U.S.
WITH ALCOA AND REYNOLDS. WA INDUSTRIAL DEVELOPMENT COORDINATOR
STATED THAT FEDERAL GOVERNMENT APPROVAL WOULD HAVE BEEN FINE A
YEAR AGO BUT THAT NOW AN ENTIRELY NEW CONSORTIUM WOULD HAVE TO
BE ORGANIZED. MITCHELL, PREMIER'S PRIVATE CONSULTANT, SAID
PREMIER HAD GONE WAY BEYOND ORIGINAL CONCEPT AND THAT A NEW
ARRANGEMENT WOULD NOW BE WORKED OUT BETWEEN ALCOA AND REYNOLDS
WITH LATTER TAKING ALUMINA FROM ALCOA'S REFINERIES. PROBABLY
REFLECTING PREMIER'S VIEWS, MITCHELL ADDED THAT REYNOLDS QUOTE
NOT ALL THAT GOOD ANYWAY UNQUOTE AND THAT FEDERAL GOVERNMENT
HAD NO BUSINESS LAYING DOWN ENVIRONMENTAL CONTROLS WHICH
PROPERLY ARE A MATTER OF STATE JURISDICTION.
4. MEANWHILE PRESS REPORTS INDICATE THAT THE LONG DORMANT
US$465 MILLION PACMINEX BUAXITE/ALUMINA REFINERY PROJECT NORTH
OF PERTH MOVING AHEAD MORE RAPIDLY WITH STRONG POSSIBILITY
OF IRANIAN PARTICIPATION.
5. PREMIER HAS PROMISED REPLY TO WHITLAM ON ALWEST BY NEXT WEEK
AND CONSULATE WILL REPORT ADDITIONAL DEVELOPMENTS.
FOULON
CONFIDENTIAL
NNN